The United Arab Emirates has experienced a solid economic growth in the first quarter of 2024, with the real gross domestic product (GDP) increasing by 3.4 per cent year-on-year to reach Dh430 billion. This growth is seen as a testament to the resilience and vitality of the national economy. The non-oil sector, in particular, saw a more vibrant growth of 4.0 per cent, driven by financial and insurance activities which recorded a growth rate of 7.9 per cent. These positive figures align with the country’s long-term economic objectives as outlined in the “We the UAE 2031” vision, which aims to increase the GDP to Dh 3 trillion by the next decade.
Abdulla bin Touq Al Marri, the Minister of Economy, highlighted the impressive performance of the economy and emphasized the country’s commitment to fostering economic diversification focused on knowledge economy sectors. The data from the Federal Competitiveness and Statistics Centre (FCSC) also revealed a 4.6 per cent growth in restaurant and hotel activities, driven by robust tourism inflows to the UAE. The country’s economic success is attributed to an innovative economic model that supports future vision, effective national economic strategies, and openness to the world, promoting partnerships and transitioning towards a flexible and innovative economic model.
According to Hanan Ahli, Managing Director of the FCSC, the growth in the UAE’s GDP in the first quarter of 2024 reflects the resilience of the country’s vital economic sectors. This growth is a result of the concerted efforts to implement the directives of the wise leadership to enhance sustainable economic diversification, reduce dependence on oil, promote investments, and attract capital and innovative projects to the country. The UAE’s advanced rankings in global economic competitiveness indicators are attributed to factors such as the stability of the financial system, the strength of the national economy, and effective economic legislation and policies that adapt to changes and face regional and global challenges.
The FCSC highlighted specific sectors that contributed to the non-oil GDP growth, with financial and insurance activities leading the way due to an increase in local credit to the private sector. Transportation and storage activities followed closely with a growth rate of 7.3 per cent, driven by the increase in the number of travellers passing through the country’s airports. Construction and building activities also experienced a growth rate of 6.2 per cent, in line with the development projects initiated by the UAE government. The restaurant and hotel sector secured the fourth spot with a 4.6 per cent growth, showcasing the UAE’s prominence in the global tourism landscape, attracting millions of tourists from around the world.
Trade activities made the largest contribution to the non-oil GDP at 16.1 per cent, followed by manufacturing activities at 14.6 per cent, financial and insurance activities at 13.4 per cent, construction and building activities at 11.8 per cent, and real estate activities at 7.1 per cent. These sectors play a crucial role in driving the country’s economic growth and diversification efforts. Overall, the UAE’s economic performance in the first quarter of 2024 reflects its commitment to sustainable growth, economic diversification, and innovation to secure a prosperous future for the country.
